What do you mean by short selling stocks? What is a bearish stock? Is there any way for us to have a brief understanding of this knowledge? The following is how to understand the short position of stocks brought by Bian Xiao. I hope you like it.
How to understand the short position of stock?
Stock short position refers to a trading strategy in which investors borrow and sell stocks in the stock market, hoping to buy them back when the stock price falls to make a profit. Specifically, short sellers borrow shares and sell them, hoping to buy back shares at low prices in the future in order to make profits from the price difference.
Short sellers expect the share price to fall, so they earn the difference by borrowing shares and selling them. In short selling, investors sell more stocks than they buy, so they hold negative stock positions.
It should be noted that short trading is risky. Because in the stock market, the stock price does not always fall, if the price rises, the short seller needs to buy back the stock at a higher price and bear the loss.
What is the liquidity of stocks?
The liquidity of stock refers to the activity of stock trading and the convenience of transfer in the market. Liquidity usually includes the following aspects:
Volume: reflects the activity of stock trading in the market. Higher turnover means that both buyers and sellers are willing to trade, making it easier to buy and sell stocks.
Entrusted price: the price that reflects investors' willingness to buy and sell stocks. There are multiple entrusted prices, and the price gap is small, which can improve the liquidity of stocks.
Market depth: reflects the order quantity and quantity of buyers and sellers at a certain price. The deeper the market, the more willing the two sides are to trade in blocks, which increases the liquidity of stocks.
Transaction aging: reflects the speed at which an order can be closed quickly. The higher the timeliness of trading, the faster the trading speed of buying and selling stocks, which improves the liquidity of stocks.
In a highly liquid stock market, investors can buy and sell stocks more conveniently and quickly, and the transaction price is more stable.
What does short selling mean?
The "bearish" and "bearish" are investors' judgments on the future market development, while "doing" and "empty" represent investors' evaluation of the systemic risks brought by "buying" or "selling".
In short, "bullish" and "bearish" are investors' subjective judgments on the risks of the market system, and "long" and "short" are rational choices of market operation behaviors (buying and selling) based on this judgment.
There are two sides in the stock market, many of which are the ones pushing the stock up.
Recommendation: The short side is the one that drives the stock down.
Derogatory term: Because people who buy stocks want the stocks to go up, it is empty and derogatory.
Being bearish means feeling that the empty side is strong, and the stock market will be occupied by the empty side and will fall. ,
What do you mean by short position?
Short selling refers to short selling by bearish investors, but the market outlook suddenly rises, resulting in huge losses.
For securities investors, short positions mean that losses have fallen below the liquidation line. At this time, the proportion of protection will be reduced. If you don't add some margin, the brokerage firm will force the liquidation, and the losses and handling fees caused by the forced liquidation will be borne by the investors themselves.
In the futures market, short position is also a meaning, because futures can buy down or buy up.
Investors who bought down made empty orders, but the market outlook rose against the trend, resulting in huge losses. For investors without futures options, there will be no short positions unless the stock price falls to 0 yuan.
Is the stock pledge explosion a good thing or a bad thing?
It is not good to pledge stocks and explode positions. There is an inversion of causality here, which needs to be clarified: it should be said that the problem of short positions will occur because bad positions lead to the continuous decline of stock prices, not because of short positions.